Sound recording problem

Hello,
Hope someone can answer the following question.

I have just installed Win98SE on my other computer. My problem is this….
When I open the multimedia properties to adjust levels etc I notice that the recording box is GREYED OUT and I cannot adjust it. The PLAYBACK is clear and adjustments can be made but not with the recording side. When I try to record a voice message then nothing happens. What is my problem? is it sound drivers? I use the Soundblaster 16 AWE 32. Do I need to update the driver? or is it a simple setting somewhere?

Hope you can help

Mike